Synopsys Probed on Allegations It Gave Tech to Huawei, SMIC
- Chip-design software maker affiliates may have broken rules
- Stock wipes out earlier gains, declines as much as 4%
Synopsys headquarters in Mountain View, California.
Photographer: Tripplaar Kristoffer/SIPA/AP
Synopsys Inc., the biggest supplier of software used to design semiconductors, is under investigation by the U.S. Department of Commerce for possibly passing key technology to banned Chinese companies, according to people familiar with the matter.
Investigators are looking into allegations that Synopsys, working with affiliates in China, provided chip designs and software to Huawei Technologies Co.’s HiSilicon unit for manufacture at Semiconductor Manufacturing International Corp., said the people, who asked not to be identified because details of the process haven’t been made public. U.S. companies are barred from selling some types of technology to Huawei and SMIC because they’ve been designated as threats to national security by the Commerce Department’s Bureau of Industry and Security.